Remaining uncertainty over the privatisation of Sydney's Kingsford Smith International Airport has been eased with regulatory authorities approving a 97% increase in aeronautical charges.
Although operator Sydney Airports Corp had sought permission for a 130% hike, the final ruling was a bonus for the company as an earlier draft decision by the Australian Competition and Consumer Commission had limited the increase to 79%.
Kingsford Smith, Australia's biggest airport, is to be sold later this year in the final phase of a privatisation programme that began in 1997. Uncertainty over whether a second major airport should be built for the city had delayed Sydney's sale but the process restarted last year when the government announced that no new facility would be built.
Expressions of interest in the airport's privatisation were accepted until 14 May. At least three groups are said to have filed interest, led by Australian financial organisations with international partners. Singapore's Changi airport pulled out over questions of its impartiality. That airport is controlled by the Singapore Government, which also controls Singapore Airlines through various investment vehicles. SIA in turn owns 25% of Air New Zealand, parent of Ansett Australia.
Source: Airline Business